bse: 539658 | nse: teamlease | isin: ine985s01024 putting … · 2019. 12. 16. · mission of...

.9.Tea m LeasePutting India to Work

®

January 29,2019

To To

Listing Department Listing Department

BSE Limited, National Stock Exchange of India Limited,

Phiroze Ieejeebhoy Towers, Exchange Plaza, 5th Floor,

Dalal Street, Fort, Plot no. C/1, G Block,

Mumbai - 400 001 Bandra Kurla Complex, Bandra (E),

Mumbai - 400 051

Scrip Code: 539658 Scrip Code: TEAMLEASE

Dear Sir/Madam,

Sub: Investor Presentation on Financial Results for Q3FY19Ref: Regulation 30 and Regulation 46 of the SEBI (Listing Obligations and Disclosure

Requirements) (LODR) Regulations, 2015

Dear Sir/Madam,

In compliance with the provisions of Regulation 30 of the SEBI LODR Regulations, 2015 please

find enclosed ‘Investor Presentation Q3FY19' towards financial results update for Q3FY19.

Further, in compliance with the provisions of Regulation 46 of the SEBI LODR we propose to

upload the above on our Company’s website wwwteamleasegrouprom for information of our

shareholders/public.

This is in furtherance of our intimation dated January 23, 2019 relating to Conference Call with

Investors on Q3FY19.

Kindly take the above said information on record as per the requirement of SEBI LODR

Regulations, 2015.

Thanking You.

Yours faithfully,

For

TeamLeasServices Limited

JIM”Alaka Chanda

Company Secretary and Compliance Officer

Encl: As above

TeamLease Services Limited, CIN No: L7414OKA2000PLC1 18395

Registered Office : 6th Floor, BMTC Commercial Complex, 80 Feet Road, Koramangala, Bangalore - 560095.

Ph : (91-80) 33002345 Fax: (91-80) 33243001 [email protected] / www.team|ease.com

Copyright © 2017 TeamLease Services Limited | Company Private & Confidential

TeamLease Services LimitedBSE: 539658 | NSE: TEAMLEASE | ISIN: INE985S01024

Putting India to WorkTuesday, January 29, 2019

www.teamleasegroup.com

Copyright © 2017 TeamLease Services Limited | Company Private & Confidential 2 of 23

Disclaimer

This presentation has been prepared by TeamLease Services Limited (“Company") solely for information purposes without any regard to any specific objectives, financial situations or informational needsof any particular person. This presentation may not be copied, distributed or disseminated, directly or indirectly, in any manner. Failure to comply with this directive may result in a violation of the applicablelaw in certain jurisdictions. By reviewing this presentation, you agree to be bound by the restrictions contained herein, and to maintain absolute confidentiality, regarding the information disclosed in thesematerials.

This presentation does not constitute or form part of and should not be construed as, directly or indirectly, any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase orsubscribe for, any securities of the Company by any person in any jurisdiction, including in India, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with,any investment decision or any contract or commitment therefor.

This presentation contains statements that constitute forward looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or itsdirectors and officers with respect to the results of operations and financial condition of the Company. These statements can be recognized by the use of words such as ''expects", "plans", 'will", "estimates","projects", or other words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially fromthose in such forward-looking statements as a result of various factors and assumptions which the Company believes to be reasonable in light of its operating experience in recent years. The risks anduncertainties relating to these statements include, but not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition,, government policies, regulations,etc. The Company does not undertake any obligation to revise or update any forward looking statement that may be made from time to time by or on behalf of the Company including to reflect actualresults, changes in assumptions or changes in factors affecting these statements. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance onthese forward looking statements

This presentation is not a complete description of the Company and may not be all inclusive and may not contain all of the information that you may consider material. The information contained in thispresentation has not been independently verified. No representation, warranty, guarantee or undertaking, express or implied, is or will be made as to, and no reliance should be placed on, the accuracy,completeness, correctness or fairness of the information, estimates, projections and opinions contained in this presentation. Viewers of this presentation must make their own assessment of the relevance,accuracy and adequacy of the information contained in this presentation and must make such independent investigation as they may consider necessary or appropriate for such purpose. Such informationand opinions are in all events not current after the date of this presentation. Further, past performance is not necessarily indicative of future results. Any opinions expressed in this presentation or thecontents of this presentation are subject to change without notice. This presentation should not be construed as legal, tax, accounting, investment or other advice.

Any person placing reliance on the information contained in this presentation or any other communication by the Company does so at his or her own risk and none of the Company nor any of its affiliates,advisers or representatives, any placement agent, promoters or any other persons that may participate in any offering of any securities of the Company shall have any responsibility or liability whatsoever,whether arising in tort, contract or otherwise, for any errors, omissions, insufficiencies or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising,directly or indirectly, from any use of this presentation or its contents or otherwise in connection with this presentation.

This presentation has not been and will not be registered as a prospectus with any Registrar of Companies in India. This presentation is not a prospectus, a statement in lieu of a prospectus, an offeringcircular, an advertisement, a private placement offer letter or an offer document under the Companies Act, 2013 and the rules made thereunder, the Securities and Exchange Board of India (Issue ofCapital and Disclosure Requirements) Regulations, 2009, as amended, or any other applicable law.


Introduction

TeamLease Services established in 2002, is one of India’s leadinghuman resource service companies in the organized segment. AFortune India 500 company listed on both NSE & BSE markets hasa presence in 8 locations, with 2250+ clients and over 1700 coreemployees across the country. A one-stop provider of humanresources services to various industries and diverse functionalroles, offering staffing, payroll processing, recruitment, complianceand training services. TeamLease set in motion the larger companymission of ‘Putting India to Work’ by focusing on its vision of 3 E’s –Employment, Employability and Education

The Company in partnership with the Government of Gujarat, setup TeamLease Skills University (TLSU), India’s first vocationaluniversity, at Vadodara. In FY2015, TeamLease rolled out NETAP(National Employability through Apprenticeship Program) toprovide on-the-job training to apprentices. The company at presenthas over 211,000 associates/trainees spread across the countryand have till date given employment to over 1.7 million people withan aim to hire millions more .


Overview

Associates

Over 2.1Lakhs associates/ trainees,making us one of the largest private

sector employer

Clients

2250+ Client base at any given timehave associates from TeamLeaseposted at various locations

Presence

Present in all 29 states with anetwork of partnerships. Delivering

in over 6000 locations

Revenue

Revenues from operations, in excessof ₹ 3600Cr for the year ending Mar

2018. Cash Positive & Debt free

Supply ChainIndia’s Leading People Supply chain

company in the organized Sector

Putting India to Work


The Journey Thus Far

2002The Company Startedoperations beginning fromfour offices. 20 clients and40 employees.

2004Started the permanent

recruitment business forone client

2005Strengthened the technologyinfrastructure with centralizing theoperations in head office at Bengaluru

Published our first labour report

2007Started New Service

Offerings

2008We initiated discussions for the apprenticeship

revamp and made compliance a separate strategicbusiness unit

20091st Round of PE Investment by Gaja Capital

Made our first inorganic acquisition of IIJTEducation Private Limited which is intoretail and institutional training

2011Signed a Memorandum ofUnderstanding (MoU) for

setting up the country’s firstskills university with State

government of Gujarat

We were the foundingmembers of ISF (Indian

Staffing Federation)

2015Filed DRHP

with SEBI

2016Listed on BSE and NSE, withthe IPO oversubscribed 67times

Acquired ASAP Info Systems &Nichepro Technologies addingIT staffing as a new serviceoffering

2017Acquired Keystone business

Solutions to strengthen ITStaffing

Acquired 30% stake inFreshersworld.com

Acquired Evolve Technologies toenter Telecom Staffing Business

Acquired 40% Stake in OnlineEducation Company Schoolguru

2018Acquired further

21% stake inFreshersworld.com.

Acquired 33.33%stake in Avantis

RegTech


Our Team

Board of Directors

Manish SabharwalExecutive Chairman

Ashok ReddyManaging Director & CEO

Narayan RamachandranIndependent Director

V RaghunathanIndependent Director

Latika PradhanIndependent Director


Our Vision

Vision

Our Long term philosophy and goals are bestreflected by our purpose of “Putting India to Work”

Our contribution to the Nation

Our vision has been at the forefront of our existence,helping us employ, “One Indian” every 5 minutes overthe past 5 years.

The Future that we see

Our goal is to become the largest Private sectoremployer in the world.


Key Value Drivers

Market Share

Governance

Technology

Knowledge

Team

Client Portfolio

Management

TeamLease holds over 5% share of theorganized staffing segment

Strict adherence to labour and corporatelaws, backed by strong internal compliance

The right know-how and data insights tohelp enhance operational efficiencies

Knowledge driven expertise across sectorswith an edge to enhance customer value

Seasoned set of senior management team,with over 200 years of cumulative experience

Several Fortune 500 companies and fastgrowing SMEs have trusted our services

Set of Intellectual capital forms acornerstone of our success

PresencePan India presence to scale our business

with increasing trust and reliability


Cross Sector Services

Infrastructure

Telecom

AgricultureFMCG

ManufacturingLogistics

RetailBanking & Finance

eCommerce

Agro Chemicals

Electrical &Electronics

Insurance

Engineering

InformationTechnology


Business Imperatives

Physical Sectoral Enterprise Education Legislative

Geographies of Work

TeamLease Disruptive Business Focus Areas

Employment Employability EducationTeamLease Services Limited

TeamLease DigitalKeystone Business Solutions

Evolve TechnologiesFreshers World

TrainingSchoolguru Eduserve

NETAP

TeamLease Skills UniversityTeamLease Education Foundation

IIJT EducationSchoolguru Eduserve

Corporate Office

Registered Office

Regional Offices

TeamLease Digital

Freshers World

Evolve Technologies

Schoolguru

IIJT

TeamLease University


Our Strategy

MatchStaffing | Recruitment | Payroll

EmploymentMatch hiring requirements of customers with the righthuman resources. Access to a better quality workforce

RepairLearning Solutions

EmployabilityBuilding careers and bridging the skill gapthrough training that matches corporateskill sets

PrepareNETAP | Skills University

EducationTeamLease Skills University - India’s first vocational skills

university prepares people to enter the workforce by equippingthem with vocational skills

HR ServicesPayroll Outsourcing | Regulatory Consulting

ServicesConsulting services for staffing, labor

compliance, corporate & legal compliance issues

Strong integrated IT platform for payrolloutsourcing, ISO 27001 Certified


Competitive Position

Source: Company data

As a market leader with national footprint, TeamLease benefits from economies of scale

1

3

25

4

On time payments to associates

Strong track record of making on-timepayments to all associate employees everymonth

Proprietary technology platform

In-house technological platform contributing tooperational efficiencies

Strong business development capability

Robust technological infrastructure

Continuous upgradation of softwareapplications and platforms

Dedicated team of 40 softwareengineers

Robust compliance platform

Proprietary end-to-end laborcompliance management software -Regulatory Life Cycle System

Robust operational levers

Centralized large scale operations

Well trained, diverse and large associateemployee base

Foray into new sectors or acquire newclients


Share of Flexi Staffing (Current & Projected)

Flexi staffingIndustry:

4.6–4.8mn

Total labor force:

500mn

2019

Formal Industry:

110mn

Total labor force:

450mn

2017

Formal Industry:

60mn

Flexi staffingIndustry:

1.8–2mn

Formalisation of workforce to significantly benefit the flexi staffing industry

Formal sector to witness accelerated growth


TeamLease Group Structure

TeamLease Services Limited

Subsidiary Companies Associate Company

IIJT Education PrivateLimited

(Consolidated)

TeamLease Digital PrivateLimited (TDPL)(Consolidated)

ASAP Infosystems PrivateLimited (Merged with TDPL)

Keystone Business SolutionsPrivate Limited(Consolidated)

Nichepro Technologies PrivateLimited (Merged with TDPL)

Evolve Technologies &Solutions Private Limited

(Consolidated)

Cassius TechnologiesPrivate Limited

(51% Stake)*

School Guru Eduserve PrivateLimited

(40.2% Stake)

TeamLease EducationFoundation

(Section 8 Company)

TeamLease SkillsUniversity

(Not Consolidated)

*Consolidated 100% as per INDAS

Joint Venture

Avantis RegTech PrivateLimited

(33.33% Stake)


Investor Update – Quarter 3 2018-19


Key Performance Highlights – quarter ending December 31st 2018

01.Quarterly revenue grew by 27% YoY and YTD revenue grew by24% YoY. Organic growth in general staffing is 19% YoY.

02.Associate/trainee headcount increased by~34,000 on YoY basis and by ~11,300 on QoQbasis. Our current associate headcount in generalstaffing is ~152,600 and NETAP traineeheadcount is ~52,500.03.

EBITDA was ₹ 24.6 crores for Q3FY19 and ₹ 69.6 crores for 9MFY19reflecting YoY growth of 37% on a quarterly basis and 49% on nine-months basis. This was achieved by way of operating leverage in generalstaffing.

04.Earnings Per Share (EPS) was ₹ 14.8 for Q3FY19 and ₹ 42.1for 9MFY19.

05.Reduced our funding exposure to 15% in general staffing business from 22% inQ3FY18 and maintained efficient working capital management.

Our ratio of associates/trainees to staffing core employees improvedto 260 in Q3FY19 from 219 in Q3FY18.

06.


Financial PerformanceConsolidated Performance

Particulars Q3FY19 Q3FY18YoY

Growth %Q2FY19

QoQGrowth %

9MFY19 9MFY189M

Growth %

Total Revenue 1,175.9 922.3 27% 1,094.7 7% 3,297.1 2,661.1 23.9%

Operating Revenue (net ) 1,172.2 918.1 28% 1,090.7 7% 3,284.2 2,646.6 24.1%

EBITDA 24.6 17.9 37% 24.0 2% 68.6 46.1 48.7%

EBITDA margin (%) 2.1% 1.9% 2.2% 2.1% 1.7%

PBT 24.4 18.9 29% 23.7 3% 69.6 52.8 32.0%

PBT margin (%) 2.1% 2.1% 2.2% 2.1% 2.0%

Net Profit (PAT) 25.3 18.4 37% 24.9 1% 72.0 52.2 37.8%

PAT margin (%) 2.2% 2.0% 2.3% 2.2% 2.0%

EPS (Basic and Diluted) - ₹ 14.8 10.8 37% 14.6 1% 42.1 30.6 37.8%

Standalone Performance

*All Numbers are in ₹ Crores except for margins


Growth %Q2FY19

QoQGrowth %

9MFY19 9MFY189M

Growth %

Total Revenue 1,096.8 866.0 27% 1,021.2 7% 3,072.2 2,557.4 20.1%

Operating Revenue (net ) 1,090.4 859.3 27% 1,014.5 7% 3,050.9 2,536.6 20.3%

EBITDA 19.5 12.1 62% 18.1 8% 52.6 33.5 56.9%

EBITDA margin (%) 1.8% 1.4% 1.8% 1.7% 1.3%

PBT 25.0 17.5 42% 23.2 8% 69.9 50.9 37.4%

PBT margin (%) 2.3% 2.0% 2.3% 2.3% 2.0%

Net Profit (PAT) 25.3 18.0 41% 23.5 8% 69.9 52.5 33.0%

PAT margin (%) 2.3% 2.1% 2.3% 2.3% 2.1%

EPS (Basic and Diluted) - ₹ 14.8 10.5 41% 13.8 8% 40.9 30.7 33.0%


Consolidated Segment Results*All Numbers are in ₹ Crores except for margins


Growth %Q2FY19

QoQGrowth %

9MFY19 9MFY18YoY

Growth %

Revenue:

General Staffing and Allied Services 1,061.7 840.4 26% 977.3 9% 2,955.1 2,491.9 19%

Specialised Staffing Services* 79.2 58.7 35% 75.6 5% 229.8 110.1 109%

Other HR Services 31.4 19.0 66% 37.7 -17% 99.4 44.5 123%

Total Income from Operations 1,172.2 918.0 28% 1,090.7 7% 3,284.2 2,646.6 24%

EBITDA:

General Staffing and Allied Services 22.1 17.6 25% 18.4 20% 56.0 45.3 24%

Specialised Staffing Services 4.5 5.9 -24% 5.5 -19% 15.3 12.8 19%

Other HR Services 0.3 0.7 -57% 4.0 -92% 6.7 1.2 434%

Unallocated (2.3) (6.3) -64% (3.9) -42% (9.4) (13.3) -29%

Total EBITDA 24.6 17.8 38% 24.0 2% 68.6 46.1 49%

EBITDA Margin %

General Staffing and Allied Services 2.1% 2.1% 1.9% 1.9% 1.8%

Specialised Staffing Services 5.6% 10.0% 7.3% 6.7% 11.6%

Other HR Services 1.0% 3.8% 10.6% 6.7% 2.8%

Consolidated EBITDA Margin 2.1% 1.9% 2.2% 2.1% 1.7%


Headcount & ProductivityQuarter General Staffing Associates NETAP Trainees Specialised Staffing Total Outsourced Core Employees Total Headcount

FY-17 Q3 1,23,946 19,427 1,261 1,44,634 1,406 1,46,040

FY-17 Q4 1,26,463 23,439 1,251 1,51,153 1,436 1,52,589

FY-18 Q1 1,29,787 28,051 1,423 1,59,261 1,467 1,60,728

FY-18 Q2 1,27,844 32,615 1,631 1,62,090 1,466 1,63,556

FY-18 Q3 1,30,950 40,423 5,910 1,77,283 1,632 1,78,915

FY18 Q4 1,32,323 43,052 5,948 1,81,323 1,704 1,83,027

FY19 Q1 1,37,735 47,493 6,407 1,91,635 1,726 1,93,361

FY19 Q2 1,45,145 48,725 6,065 1,99,935 1,704 2,01,639

FY19 Q3 1,52,693 52,525 6,117 2,11,335 1,708 2,13,043

Quarter Total Outsourced Staffing Core Employees Staffing Productivity

FY-17 Q3 1,43,373 710 202

FY-17 Q4 1,49,902 738 203

FY-18 Q1 1,57,838 773 204

FY-18 Q2 1,60,459 764 210

FY-18 Q3 1,71,373 781 219

FY-18 Q4 1,75,375 798 220

FY-19 Q1 1,85,228 800 232

FY-19 Q2 1,93,870 806 241

FY-19 Q3 2,05,218 788 260

Improvement in Staffing Core Employee Productivity

200

210

220

230

240

250

260

270

FY-17Q3

FY-17Q4

FY-18Q1

FY-18Q2

FY-18Q3

FY-18Q4

FY-19Q1

FY-19Q2

FY-19Q3

Staffing Productivity


Shareholding Structure

Category % of shareholding

Promoter Group 35.5%

Exited Promoter 5.2%

Anchor FII 14.4%

Anchor DII 1.5%

Non-Anchor FII 29.8%

Non-Anchor DII 9.0%

Employees 1.8%

Retail/HNI 2.4%

ESOP Trust 0.4%

Copyright © 2017 TeamLease Services Limited | Company Private & Confidential

TeamLease Services LimitedBSE: 539658 | NSE: TEAMLEASE | ISIN: INE985S01024

Putting India to WorkTuesday, January 29, 2019

Thank you!www.teamleasegroup.com

bse: 539658 | nse: teamlease | isin: ine985s01024 putting … · 2019. 12. 16. · mission of...

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